Members of the House of Representatives from northern Nigeria have raised fresh concerns about the four tax reform bills currently under deliberation in the National Assembly.

At an interactive session with the Presidential Committee on Fiscal Policy and Tax Reforms on Monday, lawmakers particularly questioned the proposed amendment to the Value Added Tax (VAT) revenue-sharing formula, a key component of the reforms.

The bills under review include the Nigeria Tax Bill 2024, aimed at establishing a comprehensive fiscal framework; the Tax Administration Bill, which seeks to streamline tax regulations and reduce disputes; the Nigeria Revenue Service Establishment Bill, proposing the replacement of the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS); and the Joint Revenue Board Establishment Bill, which would introduce a tax tribunal and ombudsman.

Despite calls from the National Economic Council and state governors to withdraw the bills for further consultation, President Bola Ahmed Tinubu has advocated for the legislative process to continue, emphasising the opportunity for input and revisions.

Lawmakers, including Representatives Yusuf Adamu Gagdi (APC, Plateau), Ahmed Jaha Babawo (APC, Borno), Zainab Gimba (APC, Borno), and Zakariah Dauda Nyampah (PDP, Adamawa), expressed concerns about the bills’ potential adverse effects on the economically fragile northern region.

Rep. Gagdi highlighted the impact of insecurity on the region’s economy, stating that industries and productive populations have been severely disrupted by insurgencies and banditry. He questioned how displaced citizens could benefit from VAT revenues linked to consumption.

Rep. Jaha criticised the timing of the reforms, arguing that the proposed revenue-sharing formula would disproportionately disadvantage states already grappling with security challenges.

Rep. Gimba called for an equitable VAT-sharing mechanism to reflect the unique struggles of insurgency-affected states like Borno, while Rep. Nyampah urged careful consideration of provisions that could collectively disadvantage northern states.

In response, the Presidential Tax Reform Committee assured lawmakers that the reforms aim to address inequalities in VAT distribution. The current system, they argued, disproportionately benefits a few states, leaving others underserved.

Senator Abdurahman Kawu Sumaila (Kano South) pledged that northern lawmakers would ensure their decisions align with constituents’ views, prioritising justice and national interest in the legislative process.

The Leader of the Northern Regional Caucus, Rep. Alhassan Ado Doguwa, reaffirmed the caucus’s commitment to a thorough review of the bills, emphasising fiscal federalism and equitable resource allocation as guiding principles.